Canadian housing starts fell more than expected in March and building permits dropped sharply in February, according to data released on Tuesday that suggests the country's robust housing market is cooling. Housing starts fell 17.7 percent in March to a seasonally adjusted annualized rate of 156,823 units, well below an economists' forecast for 191,000 units.
February's housing starts were also downwardly revised to 190,639 from the 192,094 originally reported, Canada Mortgage and Housing Corp (CMHC) said. The report of a slowdown in housing starts came as Statistics Canada also said municipalities issued building permits worth $6.1 billion in February, down 11.6% from January.
Technical view-
The pair is facing a crucial condition toady. Either on a fundamental or technical basis, today's trading pattern is very crucial for coming targets. In Asia's trading session the pair is trading at 1.0928, whereas the level of 1.0910 is the very crucial level. As we recommended in our earlier reports, 1.09 is the sl for all longs.
Positional view-
In the daily chart, the pair is trading below the momentum indicators. It is holding the February 19 lows at 1.0910 levels. If the pair closes the day below this, the panic mode will take the pair towards 1.08 levels and even 1.0711 levels. If any dip comes, we recommend to buy this pair for targets at 1.0955, 1.1 levels. After a day close above the level of 1.1078, the pair will be in a bullish bias for upper targets.
Intraday-
In the H4 chart, the RSI is showing a positive divergence, and the pair is taking support at 1.0910 levels. We expect the pair will pull back up to 1.0955 immediately, later, 1.1 and 1.1022 levels. If the pair breaks the 1.0910 levels, go short at 1.09 levels for targets at 1.8 levels immediately.
Safe traders can buy only above 1.0933. Its a double top in the H4 chart.
